Untitled Ventures Launches $118M Fund for Russian & Eastern European Startups

A Competitive Landscape for Russian and Eastern European Founders

Despite geopolitical tensions, a surge in funding is emerging for entrepreneurs originating from Russia and Eastern Europe. Western investors are increasingly demonstrating a willingness to invest in this region, potentially surpassing local funding initiatives.

Recently, a $100 million fund specifically targeting Russian-speaking entrepreneurs was announced, and similar ventures are gaining momentum. Now, London-based Untitled Ventures is entering the arena with a €100 million (approximately $118 million) second fund.

Investment Focus and Strategy

Untitled Ventures intends to invest in “ambitious deep tech startups” founded by individuals from Eastern Europe. The firm is particularly interested in entrepreneurs who have either relocated their businesses to Western Europe or the USA, or are planning to do so.

This aligns with the existing trend of Western venture capitalists actively seeking out founders from Russia and Eastern Europe, recognizing their often exceptional technical skills. Untitled’s investment scope encompasses B2B, AI, agritech, medtech, robotics, and data management startups.

The fund will prioritize companies demonstrating proven traction originating from the Baltics, Central and Eastern Europe (CEE), and the Commonwealth of Independent States (CIS), as well as those already established in Western Europe.

Limited Partners and Key Personnel

The fund’s Limited Partners (LPs) include Vladimir Vedeneev, a founder of Global Network Management. Untitled Ventures also lists Google, Telegram Messenger, Facebook, Twitch, DigitalOcean, IP-Only, CenturyLinks, Vodafone, and TelecomItaly as partners.

Oskar Stachowiak, Managing Partner at Untitled Ventures, stated: “The regions are witnessing substantial growth, with over 10 unicorns and €1 billion in venture funding in 2020 alone, alongside success stories like Veeam, Semrush, and Wrike. This makes early-stage investment in these areas particularly attractive to us.”

He further emphasized the region’s strong STEM education system and the availability of approximately one million highly-skilled developers, creating a significant opportunity to identify and support promising startups.

A Social Mission and Relocation Expertise

Konstantin Siniushin, also a Managing Partner at Untitled Ventures, explained: “We are committed to both economic efficiency and a social mission – facilitating the global market entry of technologically advanced projects with a strong scientific foundation from economically unstable countries formerly part of the USSR, including Belarus, Russia, and Ukraine.”

Siniushin added that their goal extends beyond simply generating sales; they aim to assist these companies in establishing headquarters in Europe to secure subsequent investment rounds.

The firm possesses considerable experience in structuring businesses across European nations such as Luxembourg, Germany, Great Britain, Portugal, Cyprus, and Latvia, and in physically relocating startup teams to establish a fully resident European presence.

Addressing Challenges and Regional Growth

While creating large-scale startups in Eastern Europe remains challenging, largely due to limited local capital, the situation is evolving. The emergence of CEE-focused funds like Vitosha Venture Partners and Launchub Ventures, alongside the success of companies like UiPath from Romania, demonstrates positive change.

The Untitled Ventures Team

• Konstantin Siniushin, a seasoned tech entrepreneur
• Oskar Stachowiak, an experienced fund manager
• Mary Glazkova, a veteran in PR & Communications
• Anton Antich, an early-stage investor and former VP of Veeam, a cloud data management company acquired by Insight Venture Partners for $5 billion
• Yulia Druzhnikova, specializing in international expansion for tech companies
• Mark Cowley, with over 20 years of experience in CEE/Russia private and listed investments

Untitled Ventures – Fund I Portfolio Highlights

• Sizolution – An AI-powered size prediction engine, located in Germany
• Pure app – A dating application focused on spontaneous and impersonal connections, based in Portugal
• Fixar Global – Developing efficient drones for commercial applications, based in Latvia
• E-contenta – Based in Poland
• SuitApp – Utilizing AI for mix-and-match fashion recommendations, based in Singapore
• Sarafan.tech – An AI-driven recognition technology company, based in the USA
• Hello, baby – A parental assistant application, based in the USA
• Voximplant – A cloud communication platform offering voice, video, and messaging services, based in the USA (exited)